SEC Charges Titan Crypto Fund for Promising 2,700% Returns

FinTech Investment Adviser Titan has been charged for using false hypothetical marketing claims for its crypto fund.

Gary Gensler smiling infront of a giant robot titan in a war torned landscape.
Created by Gabor Kovacs from DailyCoin
  • The SEC continues its scrutiny of crypto funds.
  • New York-based firm Titan is the latest to feel the pinch.
  • The SEC has issued penalties and arranged a settlement.

FinTech Investment Adviser Titan is the latest firm to feel the pinch of the regulatory crackdown by the U.S.  Securities and Exchange Commission (SEC). In a press release dated August 21, the regulatory agency announced charges against Titan for allegedly flouting advertising and compliance regulations.

Unsuitable Employee Practices

According to the statement, the New York-based crypto fund acted in bad faith by running a website that perpetuated false claims regarding “hypothetical performance,” contrary to the SEC’s marketing regulation, which came into effect in December 2022.


“For a period ranging from August 2021 to October 2022, Titan, which offers multiple complex strategies to retail investors through its mobile trading app, made misleading statements on its website regarding hypothetical performance, including by advertising “annualized” performance results as high as 2,700 percent for its Titan Crypto strategy,” read the statement

The SEC asserts that Titan failed to promote suitable employee practices. Besides self-reporting to the commission that it failed to collect client signatures for certain types of transactions, Titan allegedly provided customers with conflicting crypto asset custody information.

The regulator noted that Titan’s employees used liability disclaimer language to create a false impression of clients’ rights to legal action against the firm. The SEC complaint further underlined that the company failed to implement sufficient policies and procedures relating to employees’ personal trading of crypto assets.

The Penalties

Neither confirming nor denying the charges, Titan has agreed to cooperate with the SEC’s investigation team and will pay $850,000 in civil penalty, to be reimbursed to affected customers.

The crypto firm has further been issued a cease-and-desist order, a censure, and a $192,454 disgorgement.


Read how the SEC’s oversight on crypto firms is impacting the U.S. digital assets industry:
U.S. Faces Real Threat of Crypto “Ban by Enforcement:” Chainalysis Policy Head

Here is what the SEC said about its enforcement of crypto exchanges:
Exchanges Were Warned: SEC ChaiAr Gensler Defends Crypto Crackdown

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.